Mortgage applications have risen by 130% if home buyers dash to meet the threatening deadline for stamp rights, has unveiled a leading mortgage provider.
Santander said that it had received the increase in applications between the end of 2023 and the end of 2024, because buyers got the most out of the reduced tax thresholds before they increased on 1 April.
It is no wonder that there has been an increase in people who have eliminated mortgages, because large savings have to be made by buyers who before the Changes in seal rights.
According to the current rules for stamping rights, buyers are for the first time exempt from the tax on real estate payments under £ 425,000. In the meantime, other buyers do not pay stamp rights at a maximum of £ 250.00.
But from 1 April, first buyers will see the threshold with which they pay taxes up to £ 300,000, while other buyers have to pay taxes on slightly over £ 125,000.
From April, a first buyer who buys a house will borrow between £ 300,000 and £ 500,000 with a stamp compensation of 5% on an extra £ 125,000 in borrowing, with thousands of pounds at the total costs.
All other buyers pay 2% on the amount between £ 125,000 and £ 250,000 – a potential extra costs up to £ 2,500.
The impact will be felt the most by First buyers In places where house prices are higher, such as London and the southeast of England.
Santander said in the southeast, where the average house price is £ 385,600, first buyers could save up to £ 4,280 in stamping rights by buying before 1 April.
Meanwhile, in London, where the real estate prices are highest for £ 535,700, the potential savings rise to £ 11,2501
With Santander who is darning to do the average purchase of real estate, it takes four months after the mortgage offer for completion, buyers who have received a mortgage offer before the end of 2024 will have maximized their chances to take advantage of lower postal rights, prior to the deadline of 1 April 2025.
Graham Sellar, head of the intermediary channel – mortgages, at Santander, said: “We all know that buying a house – whether it is our first or us forever – comes with considerable costs.
“Every cent counts when considering things such as legals and removal costs, so it’s great to see that so many people get the most out of the holidays and secure their new house before 1 April.”